DislikedSometimes, it just amazes me. It was up to 1.041 and only in 20 mins dropped more than 50 points for no news at all :S
Also stopped out, will see wat happens later.Ignored
Fitch rating agency has threatened to downgrade Italian sovereign debt by two notches from current A+ rating sending EUR/USD plunging in early European trade. According to Reuters a senior director from Fitch indicated that the ratings agency was preparing to lower the ratings on Europe’s third largest economy.
The news killed the recovery rally in risk FX with EUR/USD quickly reversing its Asian session gains as the pair tumbled from 1.2805 to 1.2740 in a matter of minutes. Earlier, the euro rallied on optimism over a possible deal on the restructuring of Greek debt.
The persistent threat of of sovereign debt downgrades hangs over the Eurozone like the sword of Damocles yet each new announcement from the ratings agencies is having less and less impact on the market with most of the credit risks now priced in. After dropping through the 1.2750 level in its initial reaction to the news the EUR/USD appears to have stabilized and if the pair can recover back to 1.2800 as the day proceeds it will be testament to the fact that the euro is now so oversold that any threat of further downgrades is having minimal impact on it price.
If you trade like me, you'll be homeless and broke within a week.
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